The Impact of Corporate Social Responsibility Disclosure on Investor Sentiment in Nigeria

This article examines the relationship between corporate social responsibility (CSR) disclosure and investor sentiment in emerging markets, using evidence from Nigeria’s capital market. The study focuses on listed firms on the Nigerian Exchange and evaluates how CSR disclosure influences investor response, proxied by stock returns. CSR disclosure is measured through content analysis of annual reports and sustainability-related disclosures, while firm size and profitability are considered as moderating factors. The findings suggest that higher CSR disclosure is positively associated with investor sentiment, indicating that investors may respond favorably to transparent sustainability and responsibility reporting. The study also highlights the importance of firm characteristics, including profitability and firm size, in shaping the strength of the relationship between CSR disclosure and market response. This work contributes to the literature on sustainable finance, corporate governance, investor behavior, and capital market transparency in emerging economies, with particular emphasis on Nigeria. It provides practical insights for corporate managers, investors, regulators, and policymakers seeking to improve disclosure quality and investor confidence in emerging capital markets.